SDKA reduces semi-commercial bridging rate by 60bps

SDKA has reduced its Bridge 75 semi-commercial rate by 60bps to 0.95% pcm for loans over £250,000.

The product is available up to 75% LTV with terms available up to 24 months and up to a maximum loan size of £2.5m.

The lender says the move has been made due to the competitive pricing of semi-commercial properties around the country, alongside discussions with developers and brokers who are turning semi-commercial properties into residential residences to take advantage of non-residential stamp duty rates.

Under current SDLT thresholds a residential property purchased for £200,000 would incur an £11,500 payment, whereas a semi-commercial building would result in just a £1,000 fee. 

The figures at £500,000 would be £40,000 and £14,500 respectively.

Kunal Mehta (pictured), managing director of SDKA, said: “We have offered commercial and semi-commercial bridging since our inception 10 years ago, they are very much the bedrock of our business with increasing deal numbers every year.

“Last year we boosted the Bridge 75 semi-commercial LTV to 75% in response to market conditions, and we have reacted again by reducing the rate to 0.95% pcm to further enhance our competitive offering against a backdrop of reducing semi-commercial property prices around the UK.”